Nippon Sanso : Q4 FYE2025 Consolidated Financial Results Earnings Announcement

About this update from Nippon Sanso Holdings Corporation

Q4 FYE2025 Consolidated Financial Results Earnings Announcement ( Fiscal year ended March, 2025 ) May 12, 2025 Tokyo, Japan Notes Analysis of Operating Results (Reasons for change in Revenue and Segment Operating Income) In the supplementary materials to the financial statements of NSHD, starting from the fiscal year ending March 31, 2022, NSHD will describe the status of the business results of NSHD group on a quarterly consolidated accounting period basis, as well as its recognition and analysis of the status of the business results of NSHD group from management's perspective. Please note that Segment Operating Income is based on Core Operating Income. The following table shows Revenue, Operating income, and the effect of Forex rate changes on Revenue and Operating Income. The impact of Forex rate fluctuation is calculated by applying the average rate for the period under review to the period under review (the current period and the previous period). These disclosures are not in accordance with International Financial Reporting Standards (IFRS). However, we believe that these disclosures are useful analytical information for investors to understand the business conditions of the Group. ＜ Forex rates ＞ FYE2024 Average Forex rates FYE2025 Full-term Assumption （Apr.-Mar.） (Announced on May 12, 2025) 141.00 162.00 114.37 90.00 21.20 FYE2026 （Reference） Currency sensitivity as rough indication Unit：JPY Q1 1st Half 9M Full-term Q1 1st Half 9M Full-term Impact amount per 1 JPY Unit：¥ bn. (Full-term basis) Currency （Apr.-Jun.） （Apr.-Sep.） （Apr.-Dec.） （Apr.-Mar.） （Apr.-Jun.） （Apr.-Sep.） （Apr.-Dec.） （Apr.-Mar.） Currency Revenue Core Operating Income USD 139.63 142.61 143.78 145.31 158.24 152.45 153.03 152.57 USD ±2.3 ±0.40 EUR 151.89 154.81 156.24 157.72 170.08 165.83 165.09 163.66 EUR ±2.0 ±0.35 SGD 103.66 105.79 106.90 108.03 116.65 114.37 114.58 113.98 AUD 91.94 93.44 94.47 95.32 104.66 101.80 100.91 99.27 CNY 19.67 19.87 20.01 20.20 21.76 21.20 21.25 21.12 Presentation of overall business performance and segment performance The amounts shown are after offsetting and elimination of inter-segment transactions and do not include consumption tax etc. Notes that from Q3 FYE2023, the reportable segment names simplified, but the scope of segment aggregation didn't change. Contents Strategic overview Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) -2. Full-term performance FYE2026 Full-term Forecast Appendix 1. Strategic overview 1. Strategic overview Key Highlights Continue productivity improvements and price management Steady progress in electronics equipment construction Strong financial performance and continued improvement Closely monitor customer trend and global supply chain Continue to explore environmental related opportunities 1. Strategic overview NS Vision 2026 | Enabling the Future Our Medium-term Management plan (MTP) Group Philosophy Proactive. Innovative. Collaborative. Making life better through gas technology. The Gas Professionals Group Vision We aim to create social value through innovative gas solutions that increase industrial productivity, enhance human well-being and contribute to a more sustainable future. Strategic overview Financial KPI Progress :Consecutive growth and improvement Delivering consecutive growth and improvement for Indicators that are already achieving targets. We will continue to focus on improving profitability in order to achieve EBITDA margin target in FYE 2026. Regarding Adjusted net D/E ratio, we will consider early redemption/repayment of Hybrid Bonds/Loans in the light of interest rate trends. 1,000 975 Revenue （ ¥ bn. ） Core Operating Income （ ¥ bn. ） 165.9 135 125 90.3 87.2 102.7 123.1 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 189.1 NS Vision 2026 NS Vision 2026 1,255.0 1,308.0 1,186.6 957.1 850.2 818.2 24% EBITDA margin NS Vision 2026 23.3% 20.5% 21.2% 20.4% 19.3% 22.2% 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 NS Vision 2026 1.45 1.15 0.94 0.81 0.74 0.71 7 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 Adjusted net D/E ratio* （ times ） 0. ROCE after Tax Medium-term Management plan NS Vision 2026 planned figure (Targets set in Apr 2022, with planned figures for FYE2026) Exchange Assumption USD : ¥115 EUR : ¥125 Due to the uncertainty in the global economy, revenue and core operating income are shown in range. NS Vision 2026 6.7% 7.2% 4.6% 4.4% 4.8% 5.4% 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 6% *Adjusted Net D/E Ratio: an indicator of safety (financial soundness) calculated in consideration of this part due to 50% of the amount raised by Hybrid Finance being permitted as "Equity" by rating agencies. Strategic overview Non-Financial KPI Progress :Steady progress, highly rated in environmental field Making steady progress toward achieving our final year target, in line with our Sustainability Management strategy. In the environmental field, results were favorable in both CNP I & II and highly rated for its efforts and information disclosure. ＜ Non-Financial KPI ＞ NS Vision 2026 Segment Non-Financial Programs Initiative Non-Financial KPI Actual Final-Year Targets FYE2026 FYE2023 Released in Sep 2024 FYE 2024 Environment CNP Ⅰ Carbon Neutral Program Ⅰ Reduce the Group's GHG emissions Reduction rate of GHG emissions*1 12.3% 15.3% 18% CNP Ⅱ Carbon Neutral Program Ⅱ Reduce customer GHG emissions through environmental product offerings and applications Lower customer GHG emissions 7,308 ＞ 5,868 K t-CO 2 e 7,454 ＞ 5,667 K t-CO 2 e Lower customer GHG emissions through environmental product offerings and applications ＞ NSHD Group GHG emissions Social SFP Safety First Program Reduction in lost time injury rate Lost time injury rate *2 1.56 2.09 ≤ 1.6 TDP Talent Diversity Program Utilization of diverse talent Rate of female employees 19.9% 20.2% ≥ 22% Rate of female management posts 14.5% 15.4% ≥ 18% Governance CPP Compliance Penetration Program Compliance education and enforcement Rate of receiving compliance training 99.7% 99.4% *3 100% Highly rated for Selected as a CDP Climate Change "A list" company, the highest rating for the first time (2024) * received an "A-" score on Water Security environmental disclosures Selected as "Excellent TCFD Disclosure" and "Highly Improved Integrated Reports" by GPIF's Domestic Equity Investment Managers ≦ 1.6 Selected consecutively for inclusion in following ESG indices ≧ 22% ≧ 18% ESG indices adopted by GPIF Theme index (Social) MSCI Japan Empowering Women (WIN) Select Index MSCI ESG Score: BBB (as of Mar. 2025) In addition to the above, we are also involved in the Zero Waste Program ( ZWP ) for waste reduction, the Sustainable Water Program ( SWP ) for effective use of water resources, and the Quality Reliability Program ( QRP ) to improve quality and reliability. Together, we call them our " Eight Non-Financial Programs ." FTSE ESG Score: 3.7 (as of Jun. 2024) ESG indices adopted by GPIF Composite index FTSE Blossom Japan Index FTSE4Good Index Series *1 Reduction targets for a fiscal year are set regarding the base year of FYE2019, with figures adjusted to reflect the acquisition of the European industrial gases business. *2 This is an indicator that represents the frequency of occupational accidents. It is calculated as the number of employees injured in accidents that resulted in lost work time, divided by the total number of work hours, multiplied by one million hours. *3 100% completion rate as of the end of June 2024 Strategic overview Environment/Hydrogen-Related Business Opportunities :Continue investing in growth opportunities while strengthening risk assessment system Reflecting on the impairment losses recorded for hydrogen production facilities, we built more stringent risk assessment system for large-scale projects that may heightened risks. We will capture growth opportunities while closely monitoring market conditions and respond flexibly and quickly to changes to minimize risks. Strengthening Risk Assessment System, Responding Quickly and Flexibly to Changes Enhanced risk assessment for relatively high-risk large projects (Especially for large-scale capital investment for non-traditional applications, in markets or fields outside traditional industrial gas equipment.) As the future becomes increasingly uncertain, we will assess project pipeline and secure a conservative position is taken. Our Current Understanding on Environment Surrounding Environmental/Hydrogen Opportunities In the United States, environmental-related businesses are facing headwinds under the current administration No major changes in EU energy and environmental policies Demand for reducing GHG emissions continues worldwide, given the background of global warming. Environmental/Hydrogen Projects Under Construction (examples) Hydrogen supply for government projects On-site supply of oxygen gas for DAC *1 business Carbon dioxide production from biofuels Carbon dioxide production using geothermal power *1 Direct Air Capture: Recovering CO2 directly from the air Strategic overview Key CAPEX for our sustainable growth 4% 1% 35% 26% FYE2025 （ as of the end of Q4 ） Approx. ¥ 140.0 bn. * Approx. 45% Environmental & Hydrogen society contribution related 1% 3% 30% Significant investment opportunities; diversified capital portfolio; aligned with our NS Vision 2026. "Others" include projects which are not assignable because the facilities relate to a wide range of customers and no one specific market (e.g.) ･ New or expanded production base for Bulk business · Liquid CO2 and Dryice production related "Environmental & Hydrogen society contribution related" includes projects that contribute to our group and the customers' efforts to become carbon neutrality. (e.g.) ・ Modernizing our plants to state-of-the-art equipment ・ Hydrogen production related (including HyCO Plant) Steel & Metals Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others Note that the above is an aggregation of investments that have been approved by the Board of Directors of each our group company, but have not yet been placed in service. The size of each project is over approx. ¥500mn., $4mn. or €4mn. *Converted to JPY using the average exchange rate for the Q4 of the FYE2025, as shown in the Notes (Please see p.3). 2. Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) Consolidated results FYE2024 Q4 （ Unit: ￥ bn. ） (Jan. - Mar.) Revenue 326.4 FYE2025 Q4 (Jan. - Mar.) 336.7 YoY Difference ％ Change +10.3 +3.2% ％ Change exc. FX +3.5% Revenue Analysis Core operating income 41.2 49.3 +8.1 +19.5% +19.7% Core OI margin 12.7% 14.7% Non-recurring profit and loss 6.5 -12.2 -18.7 Operating income （ IFRS ） 47.8 37.1 -10.7 -22.4% OI margin 14.7% EBITDA margin 21.7% YoY % Change Revenue Growth +3.2% FX -0.4% Price +2.3% Pass-through & Surcharge -0.2% Volume / Mix -1.2% Others +2.6% Price Management status: Solid Pass-thru ＆ Surcharge: Flat Volume / Mix: Soft Others: Contributions from business acquisitions in Europe and Australia, etc. 11.0% 23.4% Finance costs -5.3 -4.7 +0.6 Income before income taxes 42.4 32.3 -10.1 -23.8% Income tax expenses 9.1 10.1 +1.0 Net income 33.3 22.2 -11.1 -33.3% (Attribution of net income) Net income attributable to owners of the parent 32.5 21.3 -11.2 -34.5% NI margin 10.0% 6.3% Net income attributable to non-controlling interests 0.7 0.9 +0.2 2. Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) Japan YoY FYE2024 FYE2025 （ Unit: ￥ bn. ） Q4 Q4 Difference % Change Revenue (Jan.- Mar.) 108.8 (Jan.- Mar.) 114.2 +5.4 +5.0% Segment income 9.7 12.8 +3.1 +31.6% Segment OI margin 8.9% 11.2% EBITDA margin 13.1% 15.4% % Change exc. FX +5.0% +31.6% Soft shipment volumes of primary products such as air separation gases and carbon dioxide Shipment volume in electronic material gases was flat Continued effective price management Equipment and installation sales were favorable YoY Factors for increase/decrease in this quarterly period and other comment 2. Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) United States YoY FYE2024 FYE2025 （ Unit: ￥ bn. ） Q4 Q4 Difference % Change Revenue (Jan.- Mar.) 89.8 (Jan.- Mar.) 90.0 +0.2 +0.2% Segment income 14.1 17.5 +3.4 +24.5% Segment OI margin 15.7% 19.5% EBITDA margin 28.1% 32.0% % Change exc. FX -0.7% +22.7% Slightly lower shipment volumes of core products such as air separation gases Soft volumes in non-air separation gases (such as electronics, acetylene, package, hardgoods) Continued effective price management and productivity initiatives Equipment and installation sales in both Industrial Gas and Electronics-related were soft YoY Factors for increase/decrease in this quarterly period and other comment 2. Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) Europe YoY FYE2024 FYE2025 （ Unit: ￥ bn. ） Q4 Q4 Difference % Change Revenue (Jan.- Mar.) 79.3 (Jan.- Mar.) 79.7 +0.4 +0.5% Segment income 13.6 15.1 +1.5 +11.0% Segment OI margin 17.2% 19.0% EBITDA margin 30.5% 31.6% % Change exc. FX +2.2% +13.0% Soft shipment volumes of core products such as air separation gases Continued effective price management and productivity initiatives Equipment and installation sales were firm YoY Factors for increase/decrease in this quarterly period and other comment 2. Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) Asia & Oceania YoY FYE2024 FYE2025 （ Unit: ￥ bn. ） Q4 Q4 Difference % Change Revenue (Jan.- Mar.) 40.8 (Jan.- Mar.) 44.7 +3.9 +9.5% Segment income 3.2 2.1 -1.1 -33.4% Segment OI margin 8.0% 4.9% EBITDA margin 14.7% 11.6% % Change exc. FX +10.8% -30.2% Shipment volumes of core products such as air separation gases increased In LP gas, of which a large portion of sales is in the Australia region, sales volume increased firmly In Electronics-related business, sales increased for both electronic material gases and equipment Increasing labor & logistics costs and recording preacquisition costs for a previously announced acquisition in Australia Softening sales prices in some regions due to helium supply surplus YoY Factors for increase/decrease in this quarterly period and other comment 2. Q4 FYE2025 Business performance -1. Q4 performance (Jan. - Mar.) Thermos YoY FYE2024 FYE2025 （ Unit: ￥ bn. ） Q4 Q4 Difference % Change Revenue (Jan.- Mar.) 7.6 (Jan.- Mar.) 8.0 +0.4 +6.0% Segment income 1.2 1.9 +0.7 +56.2% Segment OI margin 16.2% 23.8% EBITDA margin 21.6% 29.1% % Change exc. FX +6.6% +51.0% Sales in Japan increased since sales from portable vacuum-insulated mugs have performed steadily Sales in Korea increased since reliability issues on the third party e-commerce platforms are being resolved YoY Factors for increase/decrease in this quarterly period and other comment 2. Q4 FYE2025 Business performance -2. Full-term performance 2. Q4 FYE2025 Business performance -2. Full-term performance Consolidated results FYE2024 Full-term YoY ％ Change exc. FX FYE2025 Full-term 12.7% 23.3% Difference ％ Change （ Unit: ￥ bn. ） Revenue 1,255.0 1,308.0 +53.0 +4.2% +1.4% Core operating income 165.9 189.1 +23.2 +13.9% +10.3% Core OI margin 13.2% 14.5% Non-recurring profit and loss 6.0 -23.2 -29.2 Operating income （ IFRS ） 172.0 165.9 -6.1 -3.6% YoY % Change Revenue Growth +4.2% FX +2.8% Price +2.2% Pass-through & Surcharge +0.0% Volume / Mix -1.3% Others +0.5% Price Management status: Solid Pass-thru ＆ Surcharge: Flat Volume / Mix: Soft Others: Deconsolidation in Japan, contributions from business acquisitions in Europe and Australia, etc. Revenue Analysis OI margin 13.7% EBITDA margin 22.2% Finance costs -21.3 -20.6 +0.7 Income before income taxes 150.7 145.2 -5.5 -3.6% Income tax expenses 41.3 43.3 +2.0 Net income 109.3 101.9 -7.4 -6.8% (Attribution of net income) Net income attributable to owners of the parent 105.9 98.7 -7.2 -6.7% NI margin 8.4% 7.6% Net income attributable to non-controlling interests 3.4 3.1 -0.3 Forex （ Unit: JPY ） USD 145.31 152.57 (average rate during the period) EUR 157.72 163.66 AUD 95.32 99.27 2. Q4 FYE2025 Business performance -2. Full-term performance Japan By Industry 6% 4% 25% Steel & Metals Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 31% 22% 2% 10% Cumulative period basis % Change exc. FX -1.1% +9.4% YoY （ Unit: ￥ bn. ） FYE2024 Full-term FYE2025 Full-term Difference % Change Revenue 414.3 410.0 -4.3 -1.1% Segment income 42.9 47.0 +4.1 +9.5% Segment OI margin 10.4% 11.5% EBITDA margin 14.8% 16.0% Topics November 2024: Announced that shipping prices for liquid carbon dioxide and dry ice will be revised upward by more than 15% from current prices, effective for shipments from April 2025 December 2024: Announced that helium gas shipping prices will be revised upward by an average of more than 20% from current prices, effective for shipments from February 2025 February 2025: Announced agreement to acquire the exhaust gas abatement equipment business operated by the Resonac Group in Japan and Taiwan By Product Cumulative period basis 43% Gases Equipment and installation, other 57% 2. Q4 FYE2025 Business performance -2. Full-term performance United States By Industry 10% Steel & Metals 40% Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 8% 14% 8% 14% 6% Cumulative period basis % Change exc. FX -1.2% +13.7% YoY （ Unit: ￥ bn. ） FYE2024 Full-term FYE2025 Full-term Difference % Change Revenue 347.0 360.2 +13.2 +3.8% Segment income 50.0 59.7 +9.7 +19.5% Segment OI margin 14.4% 16.6% EBITDA margin 26.9% 28.8% Topics October 2024: Recognized an impairment loss of approximately 10.7 billion yen associated with the cancellation of a hydrogen production plant construction plan that was in progress March 2025: Announced that an additional impairment loss of approximately 15.2 billion yen will be recorded in the fourth quarter as no timeline for resuming construction of this plant has been established Oxygen on-site projects for DAC processes in the U.S. and HyCO projects in India are progressing smoothly toward completion By Product Cumulative period basis 23% Gases Equipment and installation, other 77% 2. Q4 FYE2025 Business performance -2. Full-term performance Europe By Industry 16% 29% Steel & Metals Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 3% 17% 21% 13% 1% Cumulative period basis % Change exc. FX +4.7% +12.9% YoY FYE2024 FYE2025 （ Unit: ￥ bn. ） Full-term Full-term Difference % Change Revenue 302.4 328.6 +26.2 +8.6% Segment income 53.2 62.4 +9.2 +17.2% Segment OI margin 17.6% 19.0% EBITDA margin 30.5% 31.3% By Product 11% Gases Equipment and installation, other 89% October 2024: Signed an agreement to acquire 51% of the shares of Polaris, an Italian plant engineering company December 2024: Signed an agreement for the 100% acquisition of Esteve Teijin Healthcare, which provides home medical care, respiratory services, and other home care businesses in Spain Topics Cumulative period basis 2. Q4 FYE2025 Business performance -2. Full-term performance Asia & Oceania By Industry 2% 4% 21% Steel & Metals Automobiles & Other transportation Electronics 27% Food & Beverage Healthcare Chemicals & Energy Others 41% 3% 2% Cumulative period basis % Change exc. FX +6.0% -9.2% YoY （ Unit: ￥ bn. ） FYE2024 Full-term FYE2025 Full-term Difference % Change Revenue 160.3 176.5 +16.2 +10.1% Segment income 15.9 15.0 -0.9 -5.6% Segment OI margin 9.9% 8.5% EBITDA margin 16.4% 15.1% Topics May 2024: Signed an agreement to acquire an LPG sales business in northern and western Australia December 2024: Signed an agreement for the 100% acquisition of the Coregas Group, which operates industrial gas businesses in Australia and New Zealand By Product 15% Gases Equipment and installation, other 85% Cumulative period basis Q4 FYE2025 Business performance -2. Full-term performance Thermos By Region Cumulative period basis FYE2024 （ Unit: ￥ bn. ） Full-term Revenue 30.7 Segment income 5.5 Segment OI margin 18.1% EBITDA margin 23.2% YoY FYE2025 Full-term Difference 32.5 +1.8 6.2 +0.7 19.3% 24.5% 16% Japan Asia 84% % Change exc. FX +5.7% +8.4% % Change +5.9% +12.9% Topics August-September 2024: Launched new products (including the launch of a new sub-brand "&ONDO" that develops apparel accessories) February 2025: Released new products (Expanded lineup of vacuum-insulated tumblers and portable vacuum-insulated mugs, among other products) March 2025: Began demonstration testing of a "Drink Container Reuse Service" with Alvark Tokyo 3. FYE2026 Full-term forecast FYE2026 Full-term Forecast Consolidated forecast FYE2025 Full-term FYE2026 Full-term forecast YoY Difference ％ Change （ Unit: ￥ bn. ） Revenue 1,308.0 (Announced on May 12, 2025) 1,290.0 -18.0 -1.4% Core operating income 189.1 191.0 +1.9 +1.0% Core OI margin 14.5% 14.8% Non-recurring profit and loss -23.2 0.0 +23.2 Operating income （ IFRS ） 165.9 191.0 +25.1 +15.1% OI margin 12.7% 14.8% EBITDA margin 23.3% 24.1% Finance costs -20.6 -22.5 -1.9 Income before income taxes 145.2 168.5 +23.3 +16.0% Income tax expenses 43.3 49.0 +5.7 Net income 101.9 119.5 +17.6 +17.2% (Attribution of net income) Net income attributable to owners of the parent 98.7 116.0 +17.3 +17.4% NI margin 7.6% 9.0% Net income attributable to non-controlling interests 3.1 3.5 +0.4 Forex （ Unit: JPY ） USD 152.57 141.00 (average rate during the period) EUR 163.66 162.00 AUD 99.27 90.00 FYE2026 Full-term forecast ％ Change (exc. FX) 1,328.8 +1.6% 197.2 +4.3% 14.8% 0.0 197.2 +18.9% 14.8% 24.1% -23.0 174.2 +20.0% 50.5 123.7 +21.4% 120.2 +21.7% 9.0% 3.5 152.57 163.66 99.27 Q&A Session President CEO Toshihiko Hamada Senior Executive Officer and CFO Alan Draper Executive Officer, Group Corporate Planning Office Koichiro Kubo Senior Executive Officer, Group Sustainability Management Office, and CSO （ Chief Sustainability Officer ） Takeshi Miki General Manager, Public & Investor relations, Group Finance & Accounting Office Keita Kajiyama General Manager, Accounting, Group Finance & Accounting Office Takashi Yoshida Appendix Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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